#BTC
Bitcoin (BTC) trading, consider the current price and your risk tolerance. Based on the current price of $107,983.20,
- *Percentage-Based Stop Loss*: Calculate a percentage of the current price to set a stop loss. For example, a 5% stop loss would be $107,983.20 x 0.95 = $102,584.04.
- *Dollar Amount Stop Loss*: Set a fixed dollar amount as the maximum acceptable loss. For instance, if you're willing to risk $1,000, your stop loss would be $107,983.20 - $1,000 = $106,983.20.
- *Price Action Stop Loss*: Analyze price charts to identify support levels. Set your stop loss just below a support level. Let's assume a recent support level is $106,841.30; your stop loss could be slightly below this, around $106,500.
*Example Calculations:*
- *Long Position with 5% Risk*: Entry price - (5% of entry price) = $107,983.20 - (0.05 x $107,983.20) = $102,584.04
- *Short Position with 5% Risk*: Entry price + (5% of entry price) = $107,983.20 + (0.05 x $107,983.20) = $113,382.36